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What’s Been Behind the Bitcoin Crash as BTC Falls to $60K

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What’s Been Behind The Bitcoin Crash As Btc Falls To $60k

Key Insights

  • Bitcoin whales sold over 81,000 BTC in eight days, adding strong supply pressure to the market.
  • Large wallets now hold their lowest share of Bitcoin supply recorded in the past nine months.
  • Retail wallets increased accumulation, reaching their highest Bitcoin supply share in 20 months.

Bitcoin continued its downward move as the broader cryptocurrency market faced renewed selling pressure. Total market capitalization declined by about 7.9% to $2.23 trillion, reflecting reduced risk appetite across digital assets. Bitcoin traded near $65,100 after briefly falling to $60,074, its lowest price level since October 2024.

Ethereum followed the same trend, falling close to 9% to around $1,913. The leading altcoins such as BNB, XRP, Solana, and Dogecoin also recorded losses of between 9 per cent to 14 per cent. The market evidence indicates internal supply forces but not one macroeconomic precipitator triggered the decline.

Large Holders Reduce Bitcoin Exposure

On-chain data from Santiment shows sustained selling by large Bitcoin holders. Wallets holding between 10 and 10,000 BTC reduced their holdings over recent weeks. These wallets now control about 68.04% of total Bitcoin supply, marking a nine-month low.

What’s Been Behind The Bitcoin Crash As Btc Falls To $60k
What’s Been Behind The Bitcoin Crash As Btc Falls To $60k – Source:X

Over the last eight days, big holders sold about 81,000 BTC. This selling increased available supply during weaker demand sessions. As supply pressure grew, Bitcoin prices moved lower, testing levels not experienced in several months.

Large holders often adjust exposure during periods of uncertainty. Their actions tend to influence short-term price movements due to the volume involved.

Small Investors Increase Accumulation Despite Price Decline

Large wallets decreased holdings, but smaller investors kept on accumulating Bitcoin. The proportion of wallets that contained less than 0.01 BTC expanded their total supply to approximately 0.249.This value represents the highest level recorded in roughly 20 months.

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The retail wallets dominate such a small part of the total supply, but their constant accumulation indicates that they are still involved at lower levels of prices. This trend shows that smaller investors were able to absorb some of the selling pressure that was generated by larger holders.

Supply Shifts Drive Market Volatility

The contrasting behavior between large and small holders continues to shape Bitcoin’s market structure. Similar patterns have appeared during extended corrective phases in past market cycles. Big sellers allocate supply and retail players slowly escalate exposure.

Until selling activity from large wallets declines and demand improves, Bitcoin may remain volatile.  The trend in prices is expected to portray a continuing shift in supply allocation and not news flash.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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Crypto World

Lido DAO Mulls $20M LDO Buyback to Boost Token Price

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Lido DAO Mulls $20M LDO Buyback to Boost Token Price

Lido’s decentralized autonomous organization is considering a one-off $20 million buyback of its governance token to address so-called price dislocation, which is at “historically depressed levels” relative to Ether, according to the DAO. 

The proposal, submitted Friday, seeks permission to swap 10,000 Lido Staked Ether (stETH) tokens, currently worth $20 million from the DAO’s treasury for Lido DAO (LDO), arguing that LDO is undervalued.

“This is not a routine fluctuation. It represents one of the most significant dislocations between LDO’s market price and its underlying protocol fundamentals in the token’s history.”

A token buyback of this size could boost the price of the token, which has fallen roughly 96% from its all-time high. In November, a Lido DAO member pitched an automated buyback mechanism for LDO to improve the token’s price. However, that proposal hasn’t been implemented.

LDO’s change in price relative to ETH since 2024. Source: Lido DAO

Lido DAO pointed out that LDO is trading at a steep discount to Ether (ETH) at a ratio of 0.00016, roughly 63% below its two-year median.

This is despite the protocol holding the top spot of the Ethereum liquid staking market, with a 23.2% share of staked Ether, according to Dune Analytics data. The protocol’s dominance has even been flagged as a centralization risk to the network in previous years.

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Share of Ethereum network validators. Source: Dune Analytics

Related: Ethereum builders propose ‘economic zone’ to tackle L2 fragmentation 

LDO is currently trading at $0.30, down 95.9% from its $7.30 high set in August 2021, according to CoinGecko data. LDO’s $255 million market cap makes it the 141st largest token by value at the time of writing.

“That dislocation is not justified by a proportional deterioration in protocol performance,” Lido DAO said. 

Lido DAO proposes buying stETH in batches

Lido DAO proposed buying up to 10,000 stETH in smaller batches of 1,000 to buy LDO. 

Lido DAO said it would use limit orders or adopt a dollar-cost averaging strategy to avoid market volatility. 

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